There was good news for the UK economy last week with second quarter economic growth coming in at 0.6%, above the 0.4% during the first quarter and ahead of expectations. The figure included the last week of June, and does therefore include data post the Brexit vote, however, its impact on the overall figure is limited. The positive shock of this data was somewhat overlooked as any momentum gained is expected to be suppressed from the impact of Brexit, especially following the less favourable PMI survey released the week before.

Gilt yields fell once again with the expectation of a 0.25% cut to the Bank of England base rate now priced at 97%. Furthermore, the Federal Reserve elected to once again hold rates steady, and although some have been expecting an increase following the strong Jobs data it was in line with expectations. However, an increase in US interest rates is expected to come through by the end of the year.

While there has clearly been a reduction in confidence in the UK following the referendum, there have been signals from companies showing that they are still willing to invest. GlaxoSmithKline announced that it still perceives the UK as an attractive location and announced that it intends to invest £275m in manufacturing sites. Wells Fargo the US bank, completed a purchase of a £300m office building in central London, an area of particular concern for investors. Elsewhere, it appears the international perception of the pound remains strong with the kidnappers of F1 boss Bernie Ecclestone’s mother-in-law in Brazil requesting the ransom to be paid in sterling, although fortunately, no money has needed to change hands.

This week sees the Bank of England interest rate decision announced on Thursday. US non-farm payrolls and unemployment rate are released on Friday.